Bank of America is doing all it can to delay the inevitable equity issuance. Reuters has just broken the news that the bank is in active negotiations with Kuwait and Qatar sovereign wealth funds to sell its $17 billion China Construction Bank stake. There are several problems with this approach: first, the petrodollar sovereign wealth funds just lost over 20% of their AUM courtesy of the global equity rout and of the plunge in oil by more than 20% in less than 2 weeks; Second: everyone recalls what happened to Alwaleed when he bought his "Blue Light" citi stake; third: if BAC does indeed sell its CCB stake, it will leave it with zero disposable assets and will have no choice but to approach the equity market. Fourth, the fact that it needs this cash is validation of all the rumors that the bank's capitalization may be urgently strapped very soon, and that today's Berkowitz call was nothing but lies (in typical BAC style); last, since the final cash need when all is said and done, when all the litigation is over and when the NY AG is done with the bank, BAC will need far, far more cash than $17 billion. Which is why any BAC bounce in the AH session should be viewed very skeptically.

More from Reuters:

Bank of America Corp <BAC.N> has held exploratory talks with the principal investment funds of Kuwait and Qatar about selling part of its stake in China Construction Bank <0939.HK>, sources with direct knowledge of the talks told Reuters.

Bank of America, which owns about 10 percent of CCB's <601939.SS> Hong Kong-listed shares and is scurrying to raise capital for its mortgage-scarred balance sheet, will be contractually free to sell the bank shares after Aug. 29. They are valued at about $17 billion

The bank, the largest in the US by assets, is likely to sell half its stake in order to shore up its Tier 1 capital. Analysts believe Bank of America needs about $50 billion to meet new capital requirements

Talks about the Chinese bank have been held with other investors in addition to the Kuwait Investment Authority and the Qatar Investment Authority, the sources said

It is unclear if any agreement with the sovereign wealth funds or other investors have been cemented.

Bank of America, whose shares have fallen 20 percent in the past week, did not mention the China investment during a widely followed conference call that top executives held Wednesday with thousands of investors. Chief Financial Officer Bruce Thompson said on the call that asset sales are being considered to boost capital.

"These stakes will be sold eventually," one source said of the Chinese bank shares. "They have been shown previously to funds who matter."

For those who are actually confused what this news means, this is precisely what Lehman started doing a few months ahead of its own bankruptcy filing.

We look forward to one of two outcomes: i) the spin off of CFC (to the Fed and/or the GSEs), making BAC less than TBTF, or ii) the implosion of the entire monolith. At least the company's Bryant Park NY HQ should fetch about $0.25 per share.

Bank of America Corp. has agreed to sell part of its home-loan portfolio to government-controlled housing giant Fannie Mae, as the bank looks to shed assets and pare its exposure to an array of mortgage woes.

The deal, finalized last Friday, will deliver the rights to process and collect payments on a pool of 400,000 loans with an unpaid principal balance of $73 billion, people familiar with the deal said. The purchase price is more than $500 million, one...

You mean European mortgages. This is a derivatives timebomb from Europe, mostly France. And, our sorry assed politicians took out any meaningful reform from Dodd Fwank sellout and there is still 850 TRILLION with a T, of these WMD that the banks are still exposed to and still playing with. Now we have the Bear Stearns moment part 2 European version. We do not have the money to bail out the entire financial system again without destroying the dollar. With Obama picking grapes and congress touring Israel their motherland. We Are PHUCKED and going down this time hard. I hope to see everyone on the other side, the excrement is starting to hit the fan blades.

This needed editing, I have gone to the trouble to correct the text of the posted excerpt:

BofA Sells Sack of "Empty Boxes" (AKA Unsecuritized SHIT) to The United States

Bank of America Corp. has agreed to sell the non performing part of its home-loan portfolio to government-controlled housing giant Fannie Mae (which is already loaded down with underperforming and unsecuritized shit), as the bank looks to shed assets and pare its exposure to an array of mortgage woes.

The deal, finalized last Friday, will deliver the rights to process and collect payments on a pool of 400,000 toxic loans with a never to be paid principal balance of $73 billion, cocksuckers familiar with the con said. The purchase price is more than $500 million, one...

Contrary to opinion, most articles are greatly improved with four letter words. Bank of America really should have been called Piece of Shit Bank of America and Fannie Mae should have been called cocksucking Fannie Mae.

Buy syringes. All sizes. From your local medicine store for people who have to take insulin and from your local vet for people who have to dope up bulls. You'd be surprised what a 100 cc syringe with the right household ingredients and needle that is visually stunning will make a guys ball sack look like. You can learn chemistry and physics. Which chemial makes his nuts purple. Which makes his nuts green.

You do not get a free house. The story of what happened around failing banks in the 30's is not widely known. A bank in the midwest would fail. Say, a farmer who keeps his money in the bank, and has a mortgage on the farm with the same bank, loses all the money he had on deposit. But his mortgage is bought by some other bankd for 5 cents on the dollar and that bank then comes after the farmer, foreclosing because the farmer can't operate without his funds and can't pay his mortgage. This is why the people hated the banks, and loved the bank robbers like Bonnie and Clyde and Pretty Boy Floyd.

My one credit card is with BoA and I have used it for staples and other equipment in the past 3 months and have no intention of paying it off if BoA fails. I will offer to pay the company who absorbs BoA the same percentage of the debt that they paid for BoA plus 3% for their trouble. That is only fair. If they don't like that deal then they get DICK. Why the F should I have to pay 100c on the dollar for it when they didn't? Screw that shit.

because doing that is "immoral" according to most americans. bank can pay jack shit for the debt, companies can "restructure" their debts and pay nothing... oh, but you the consumer had better pay every last dime plus interest and penalties or else!

Just a matter of time until JPM absorbs all banking activity in the country. $2 trillion in assests already, why not make it double. What sort of discount do they aquire BAC's only good assets at? Who gets forced to carry the baggage of Country Wide? oh, the tax payer? thanks...

There are a few articles I would read there that I knew they were simply being made to write the bullshit for their masters. You just have to laugh. I wonder if anyone really did sell their physical to buy BOA? If anyone has physical, they are normally much smarter and aware than 99% of the rest who may have listened to such bullshit.

An equity fund manager was being interviewed yesterday morning on bloomberg and he was saying that there are some absolut bargains in the market trading for substantial discounts. He recommended BAC as one of them. I will believe NOTHING, other than what people who work in the financial sector tell me. Because they just know best.

Ahem, I thought they sold this unit in 2009? Something seems fishy here............is this the same one or a different one? I swear they either sold or tried to sell a China unit during the last collapse.

The greatest fraud and robbery ever to unfold! It is truly amazing what the bankster have managed to do in just 10 years. In the end, the criminals skate out the backdoor with all the loot and nationalize the debt load.

One can only ask where did all the “money debt load” go? Let me see, by looking back in recent financial (political) history, how many trillions did the fascist banksters steal (taxpayers newly printed debt) in the last 10 years?

The GM maneuver, Fannie May and Freddy Mac maneuver, Tarp, QE 1 and 2, (3), Federal Reserve 40 trillion partial audit, no one know exactly how many trillions that they made off with or how much the taxpayer owes!

The fascist banksters and the New World Order knew they would win and not a precious traitor soul will be brought to Justice! Argentina was just a testing ground for the testing of their global terrorist financial weapon of mass destruction. Now it is America’s turn!

Perfect, now nationalize the debt! Perfect robbery! The fascist banksters with their puppet congress and globalist main stream propaganda media are so slick! Attorney General Holder, Geithner, Congress, Supreme Court and Obama deserve a well done and a vacation in Hell!

The crowd goes wild: “We don’t care, hurray for me; I have got my physical and screw the other guy!”

Everything is okay, Mr. Lewis. You got out in time and your fortune is intact. Fuck everybody else! You got enough money to do wharever you want and to buy protection. You don't have to practice "smiling" anymore either, since you got all the bread you need and don't have to play the game anymore. Oh! Remember that guy you fired from ML? He is okay too! He is real sorry he spent millions re-modeling his office at ML while he ran the company into the ground. He does not regret handing out all those bonuses just before you took over either. Anyway, it has been really fun! Bye....................

Welp, if BofA goes and does that, then I have zero reason to have an account. BofA is only kept now simply because it's free to move some 4000 RMB per day on the CCB ATMS, otherwise it's huge fees and not worth it at all. On an average year, I'll shuffle some $150k through that bank, not anymore it seems though and I'm fairly certain all others in China will join in the exodus as well. Hasta.